Home Market News <html> Teva Pharma CEO Stands Firm against Split Speculations; Excited about Potential Interest in API Business Divestiture

Teva Pharma CEO Stands Firm against Split Speculations; Excited about Potential Interest in API Business Divestiture

0
<html>
  Teva Pharma CEO Stands Firm against Split Speculations; Excited about Potential Interest in API Business Divestiture


Teva Pharmaceutical Industries, a company previously rumored to split into two separate entities, has announced its intention to remain a unified entity, managing both generics and branded drugs. On Tuesday, Teva’s Chief Executive, Richard Francis, emphasized their decision to maintain unity, stating that the generics and branded drugs businesses complement each other well.


The generics division plays a pivotal role in funding the company’s research and development efforts, allowing Teva to craft a strategic upper hand in the pharmaceutical landscape. The collaboration with Israeli universities on R&D projects has eliminated the need for external funding, providing Teva with a unique advantage.


Despite challenging circumstances such as the loss of exclusivity for the multiple sclerosis drug Copaxone and various legal battles, Teva remains optimistic about its future prospects.


Back in January, alongside its fourth-quarter earnings, Teva unveiled its plan to divest its active-pharmaceutical ingredient (API) business. With approximately 4,300 employees, the intended divestiture allows Teva to optimize current and potential revenue streams, foreseeing its completion in the first half of 2025.


The API business, valued at $1 billion in an $85 billion global market, is anticipated to attract significant interest as a standalone entity. Francis expressed confidence that the API business could surpass its current 6% annual growth rate.


In a Reuters report, Francis emphasized that future M&A activities would be undertaken thoughtfully and appropriately, especially as the company’s debt decreases.


Price Action: TEVA shares are up 0.88% at $13.14 on the last check Tuesday.


Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.


Photo by Ralf Liebhold via Shutterstock